| The EU's
Renewable Energy Directive: What are the 20-20-20 targets of the EU's Renewable Energy Directive? Target 1: Reduce EU greenhouse gas emissions by at least 20% compared to 1990 levels; i.e. unilaterally extending the EU's 8% Kyoto obligation. Target 2: 20% of the EU's final energy consumption to come from renewable sources by 2020. Target 3: Reduce primary energy use by 20% compared with projected levels to be achieved by improving energy efficiency. |
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| Did you
know? According to the latest statistics:
What do these statistics entail? In simple term, combined with EU Renewable Energy Directive, EU countries would need to rely on wood pellet import from Non-EU countries. |
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Dear Colleague,
What will be the impact on the wood pellet market for European countries to meet their targets of National Renewable Energy Action Plans (NREAPs)?
Based on the the NREAP Bioelectricity targets, pictorially, the electricity generated from solid biomass will increase significantly by 2020:
| Major
European growth Market for Biomass Heating & Power: Biomass Heating: - France (mainly domestic) - Germany (mainly domestic) - Italy - UK - Sweden Biomass Power: - Germany (mainly domestic) - UK - Italy - Sweden - Netherlands - Poland (mainly domestic) |
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| Our services include: - End-user introduction Contract negotiation and closure - Sampling inspection & verification, pre-inspections & other quality verifications - FOB or CIF, namely vessels nomination and laycan and hull pre-inspection - Timely documentation management such as shipping, invoices, payments etc. - Execution and management of all terms and conditions of contracts to the mutual satisfaction of all parties As brokers and contracts managers a nominal Agency Fee is applicable and negotiated directly with you. Benefits of using our services: Considering our unique position globally and especially in Europe: - We represent all year around buyers: This allows us to continue with purchasing and delivering wood pellets in the Summer, when your consumer market runs low - We help your cash-flow: Due to the volume order and immediate payment against delivery, our streamlined process allows your cash-flow to remain intact. - We help you with your Storage, Logistics & Marketing costs: Our unique business model, our unique position in the market and our all year around purchasing and delivering model permits us to reduce your storage, logistics and marketing costs. This unique approach further allows us to reduce the risk of pellet deterioration by shortening storage time. |
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Similar trend will be inevitable for Heating and Cooling from Biomass:
Current European Market Trend:
As the initial signs of complying with the NREAP requirements, the market trends in Europe are:
- Favourable legislation for continuous growth of consumption; particularly in UK, Benelux and Scandinavia
- Announced fade out of existing nuclear plants: Belgium, Switzerland and possibly for Germany
- Financial Sector crisis, Sharp rise in Raw Materials, Rise in Mwe Costs and Steady (but slow) Pellet ) Price increase results in new projects being stalled
- Consumer Market versus Industrial Market sales strategy results in more SPOT vessels, shorter term large volume contracts and appearance of medium medium-sized bagged Pellets distributors/traders
- Russia & Portugal emerge as new players in the export for industrial market
- Baltic to suffer from high cost of Raw Materials
- Gold Rush from Utilities to US, Canada & Brazil for securing long term and high volume supplies
- UK only will need about 15 million mt per year in 2015 and 24 million mt per year in 2020
- If Germany moves ahead with no-nuclear plan, demand in Europe will increase by about 40% and the price by 30%
Market Conclusion:
Canada and USA will become major players in exporting wood pellet to Europe.
- 1 million tonne per year of new wood pellet capacity has been added already in Canada in 2010-2011 and more than 1 million tonne per year additional capacity is expected in 2012-2013
- More than 2.4 million tonne per year of new wood pellet capacity is expected in the USA by end of 2012
So, are you ready? ... If in doubt, let us assist you with the entire process...
On behalf of our global business affiliates,
Sincerely,
Rahmat Ushaksaraei, AInstIB, P.Eng., PMP
bio wood pellet
Founder
www.biowoodpellet.ca
Canada
GeBTL, Global Executive Business & Trade Links
Founder
www.GeBTL.com
accrete, The Business Excellence Realization
Founder & President
www.accrete.ca